Breaking News

Natural gas futures hold gains after U.S. supply data

CommoditiesSep 20, 2012 10:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Natural gas futures were higher during U.S. morning trade on Thursday, holding on to gains after a report from the U.S. Energy Information Administration showed U.S. gas supplies rose broadly in line with market expectations last week.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD2.792 per million British thermal units during U.S. morning trade, jumping 1.1%.       

It earlier rose by as much as 2.1% to trade at a session high of USD2.821 per million British thermal units.

The October contract traded at USD2.794 prior to the release of the U.S. Energy Information Administration report.  

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 14 rose by 67 billion cubic feet, just above market expectations for an increase of 64 billion cubic feet.

Inventories rose by 89 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 73 billion cubic feet, according to U.S. Energy Department data.

Total U.S. natural gas storage stood at 3.469 trillion cubic feet as of last week. Stocks were 320 billion cubic feet higher than last year at this time and 278 billion cubic feet above the five-year average of 3.218 trillion cubic feet for this time of year.

Inventory did not top the 3.4-trillion cubic feet level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year.

The report showed that in the East Region, stocks were 76 billion cubic feet above the five-year average, following a net injection of 44 billion cubic feet.

Stocks in the Producing Region were 150 billion cubic feet above the five-year average of 974 billion cubic feet, after a net injection of 20 billion cubic feet.

Market analysts have warned that without strong demand through the rest of the summer cooling season, gas inventories will reach the limits of available capacity later this year.

A bout of extreme heat across much of the U.S. earlier in the summer helped boost natural gas prices above the key USD3.00-level in late-July. Prices rallied to a 2012 high of USD3.275 per million British thermal units on July 31.

But futures have come under heavy selling pressure since the start of August, losing almost 12% after extended weather forecasts pointed to milder weather across most parts of the U.S.

Natural gas demand typically rises in the summer as air-conditioning use boosts utility demand, then sinks in the fall as demand weakens ahead of the peak winter heating season.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October dipped 0.15% to trade at USD92.15 a barrel, while heating oil for October delivery added 1% to trade at USD3.074 per gallon.

Natural gas futures hold gains after U.S. supply data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email